RMI Test 2 – Flashcards
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Which of the following is not a benefit of taking Ritalin and Adderall listed by Joshua Gowin?
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heightened awareness in healthy, well-rested adults
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In which age category do you face the highest risk of premature death?
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your 40's
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Which of the following is NOT one of the five main catogories of risk faced by individuals?
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reputational
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According to Joshua Gowin's article, some university surveys have shown that up to 35% of students have obtained which two drugs as a study aid?
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Adderall and Ritalin
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The financial consequences of property risks include: I. reduction in property value II. increases in expenses III. lost salary
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I and II only
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In defense of "smart" pills, Joshua Gowin frequently compares them to what other cognitive enhancer?
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caffeine
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Alan Schwarz's attack on "smart" pills centers around the story of _____________, a college class president and aspiring medical student who became addicted to the "smart" pill he was improperly prescribed.
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Richard Fee
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Joshua Gowin posits that since most people believe Adderall and Ritalin will work, they will at minimum offer
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a placebo effect.
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According to Alan Schwarz in "Is the Use of 'Smart' Pills for Cognitive Enhancement Dangerous?", false prescriptions of ADHD medicine is on the rise. Which of the following is not listed as being one of the dangers of false prescription?
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increase mental awareness
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According to Alan Schwarz, which involved party should first change how ADHD medicine is given?
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doctors
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In the case discussed in class, we identified some overriding themes. Which of the following was NOT one of the overriding themes?
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managerial efficiency
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Which investigative body concluded that BP endangered workers to cut costs?
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US Chemical Safety & Hazard Investigation Board (CSB)
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Sally desperately wants to open her own nail salon. She decides to open on the north side of town, which she did not realize receives relatively little traffic. Which category would this error fit under?
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strategic
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Business risk can encompass which of the following?
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all the above
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Which of the following was not identified as a primary cause of BP's March 2005 accident?
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overworking employees
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Which of the following is an example of a hazard risk?
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flood
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The people, processes, and systems in place to produce the company's product/service describes which of the following risk categories?
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operational
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According to the reading on behavioral analytics, what percentage of business loss can be attributed to operational risk?
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30%
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Which of the following was not included in the corporate strategy perspective for BP?
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Correct growth through hostile takeovers
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Critics of BP's approach to rebrand asked how an oil company could be which of the following?
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green
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Which of the following is not true about REI scores?
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REI scores help determine macroeconomic effects of monetary policy.
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According to "From Superstorms to Factory Fires", the author was surprised to find what kind of correlation between how much a firm spends annually on procurement at a particular site and the site's impact on company performance?
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little correlation
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Which of the following provides the clearest description of time to recovery (TTR)?
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the time it would take for a particular node to be restored to full functionality after a disruption
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In "Strategy, Risk, and the Global Financial Crisis", Walter Keichel argues that a fair-minded observer would conclude which of the following statements in regards to the financial crisis?
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While strategy and its champions may not have been a main cause in bringing on the global financial crisis, they did not do much to avert it.
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The following statement describes which of the following theories? "_________ is a theory of management that analyzes and synthesizes workflows. Its main objective is improving economic efficiency, especially labor productivity."
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Taylorism
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Which of the following is not an example of PI (performance impact)?
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unemployment rate
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In "Strategy, Risk, and the Global Financial Crisis", what was a major difficulty encountered by Boston Consulting Group when the firm canvassed Indian, Japanese, European, and American firms?
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Firms were unwilling to implement a strategy, replying "We don't do strategy".
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Which of the following is a primary benefit of using the linear optimization model?
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The model reveals supply chain dependencies and bottlenecks.
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In "From Superstorms to Factory Fires", what was Ford able to do using the model described in the article?
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Using the model, Ford was able to identify the supplier sites that required no special risk-management attention.
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Which of the following is not described in "Strategy, Risk, and the Global Financial Crisis?" as being part of the "constellation" of forces responsible for the blurring of traditional industry lines?
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Interest from Investors
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Which of the following is not a main bias we encounter when developing models?
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location bias
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Individuals and organizations measure risk/return with expected utility
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false
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What field basically studies incentive systems?
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economics
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People who have experienced a low-probability/high-consequences event tend to overestimate its likelihood. What type of bias does this describe?
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experience bias
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Which of the following actions describes a way organizations use expected value?
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Organizations estimate the future cash flows that are generated by an investment and then discount them back to present value.
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Age biases occur when people in different age groups interpret information about risk differently
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true
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A(n) _______ is an inclination of temperaments or outlook to present or hold a partial persepctive at the expense of (possibly equally valid) alternatives in reference to objects, people, or groups
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bias
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Which of the following is a way organizations utilize opportunity cost in their calculations?
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discounting
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Sue is a very bright college student who stays up to date on all the news channels. In response to the number of child abductions she has seen on the news lately, she insists that her mother purchase a child harness for her younger brother. What type of bias is this?
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media
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Which part of Secretary of State Donald Rumsfeld's quote poses the most threat to analyzing and creating decision-making models?
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"unknown unknowns"
